Gift Bunching: A Way to Maximize Your Charitable Impact
With a technique known as gift bunching, you can maintain your charitable impact while realizing potential tax benefits.
Many donors choose donor advised funds (called DAFs for short) as a flexible and efficient way to organize charitable giving.
With a DAF, you receive a potential tax deduction each year you give to your fund and then decide how to direct the funds over time, so you can support multiple nonprofits.
When you pair your DAF with a technique known as gift bunching, you can sustain your charitable impact while potentially maximizing your tax benefits.
Our Senior Vice President of Philanthropic Services, Jeremy Wells, explains the advantages of gift bunching in this video.
In the video, a donor clusters - or bunches - three years’ worth of charitable giving in one year into their DAF and takes the charitable deduction on their taxes that year. This allows them to itemize deductions.
They then recommend grants out of their DAF to the community causes they support over time. The donor takes the standard deduction in those years where they aren’t adding to their donor advised fund.
If you’d like to learn more about making the most impact with your charitable giving, please reach out to our Philanthropic Services team.
More Stories
Singing for Justice: Waigwa Leads Choir in Lifting Voices and Community
Choral director Waigwa aims to bring the human experience to the concert stage.
See the project
Empowering Change in the Next Generation of Asian Leaders
Minnesota nonprofit Future of Us is helping Asian American Pacific Islander youth find their voices and become agents of change.
See the impact
Women of Faith in Philanthropy — Legacy, Leadership and the Future
A panel event showcased how women of faith are poised to shape and enrich the philanthropic landscape, as they have for generations.
See the impact
Three Minnesota Foundations Launch ‘Our Home State’ Initiative with $20 Million Commitment
The initiative, focused on expanding housing stability and catalyzing local housing solutions, includes Ecolab as an early funder.
See the News
Faith in Action: ISAIAH’s Blueprint for a Multicultural Democracy
A multiracial, multi-faith coalition empowers Minnesotans to shape their communities and secure lasting change.
Watch the video
Meeting the Moment: How the Foundation Expanded Community Support in a Critical Year
A one-time, twenty percent increase in dollars granted reflects the Foundation’s commitment to community-driven solutions, urgent needs and long-term equity.
See the impact
Leading a Path Forward: How Queen Drea Uses Music to Find Her Roots
Sound alchemist Queen Drea seeks reconnection with her family’s heritage through music and storytelling.
See the project
Fall 2025 Food Assistance: What You Can Do
Nonprofits, community partners and food shelves are working swiftly to provide resources to fill in the gap as best they can.
View the list